Does my auto insurance cover damage caused by a friend who borrowed my car and got into an accident?
If you lend your car occasionally, you may have questions about auto insurance coverage for damage caused by a friend who borrowed your car and got into an accident. Your auto insurance may cover damage a friend caused, but it depends on the type of auto insurance you carry. Learn about required coverage and see if you're taken care of.
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Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Kristen Gryglik
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Michael Leotta
Updated August 2023
- Accidents can happen to anyone, so when friends or family members borrow your car with your permission, the permissive use clause in your insurance policy has you covered
- Even if you don’t list your friend on your policy, they can still be covered — but that depends on your insurance company
- Most importantly, when you allow others to borrow your car, you must lend your car responsibly to minimize potential risks and liabilities
When your friend borrows your car and has an accident, it’s crucial to understand what situations your auto insurance covers.
But does auto insurance cover damage caused by a friend who borrowed your car and got into an accident? In this instance, “permissive use” activates. It refers to situations where you— as the vehicle owner — have given someone express permission to drive your car.
Auto Insurance Coverage When a Friend Borrows Your Vehicle
In a nutshell, yes. When you let a friend borrow your car, and an accident happens, your auto insurance covers the damage as long as your friend has permission to operate the vehicle.
However, the coverage amount depends on your specific policy and state regulations. So you’re covered but with a few stipulations.
Your insurance primarily covers damages caused by your friend. Your insurance policy could cover the entire cost within your agreement. But if it doesn’t fully cover damages, your friend’s insurance acts as a secondary auto insurance policy to handle the remaining amount up to the limit on your friend’s policy.
Read more: Does my auto insurance cover damage caused by a driver who borrowed my car without permission?
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Exclusions and Restrictions on Covered Damages Following an Accident
For example, according to Utah State Legislature, covering damages caused by your friend depends on your friend’s insurance terms and conditions. With that in mind, discussing this before handing over your keys is essential.
Unless you list your friends on your insurance policy, they shouldn’t drive your car too often. However, if someone frequently uses your vehicle, it’s important to list them as a driver on your policy to ensure they (and your car) have adequate coverage.
Asking the question of, how much it costs to add someone to your auto insurance policy is an important one. The accident’s cost might far outweigh adding a new driver to your policy.
Failing to list your friend as the driver could cause your insurance company to deny your claims or even cancel your policy if it discovers your friend’s regular use. In other words, letting friends borrow your car frequently can put your rate or policy at risk, let alone your car’s condition.
Auto Insurance Coverage Options for Friends Driving Your Car
To ensure you fully understand your policy and its coverage when a friend borrows your car, carefully read it to understand the terms and conditions related to other people driving your vehicle, including any exclusions or restrictions.
Most government authorities recommend that you talk with your insurance agent — as your agent would be able to better point out any confusion about your policy. In addition, doing so will help you know if you chose the right coverage.
So, before lending out your car, discuss insurance coverage with your friends and ensure they understand their responsibilities.
Auto Insurance Coverage if Your Friend Causes an Accident: The Bottom Line
Your friends should understand your trust in them — and your expectations for them to take care of your vehicle while in use. Consider your friends’ driving histories, experience, and insurance statuses before lending them your car.
A driver with a history of accidents or traffic violations may pose a higher risk. Some policies may have exclusions or restrictions that even limit the accident from being covered at all, such as excluding drivers under a certain age or those with specific driving records.
Additionally, ensure your friends have valid insurance, which can be secondary coverage.
All in all, your auto insurance should cover damage caused by a friend who borrowed your car. By knowing the answers to the question, what are the different types of auto insurance coverage? Then, you can make better, informed decisions about which friends get behind your wheel.
Frequently Asked Questions
Does my auto insurance cover damage caused by a friend who borrowed my car and got into an accident?
Most likely, your auto insurance covers the damage caused by your friend through the “permissive use” portion of your insurance policy.
This concerns situations where you — the car owner — grant someone (your friend) direct permission to drive your car. It extends your auto insurance coverage to that driver, even if you don’t list the driver on your policy.
If my friend has an accident while driving my car, are there limitations on insurance coverage?
There can be limitations to the coverage. These limitations may lower liability limits for your friend in contrast to your limits. Also, they may exclude coverage based on your friend’s age or driving record. Likewise, state regulations might influence coverage limits and requirements for your friend.
Do state regulations impact coverage if I let my friend borrow my car?
Insurance regulations vary by state, which can affect coverage. For example, some states may require insurance companies to provide “permissive use” coverage, while others may not. State laws can also influence the minimum liability limits required for this insurance coverage.
What should I do before letting my friend borrow my car?
Before lending your car to a friend, you should review your insurance policies together — ensuring your friend’s coverage can also cover excess damages.
Your friend’s policy could act as secondary coverage. Most importantly, ensure your friend understands their responsibilities while in your car. Their driving history is important in your evaluation.
What if my friend frequently uses my car?
If your friend frequently uses your car, you must list them as a driver on your policy to ensure they have enough coverage on your auto insurance policy. Failing to list your friend on your policy could result in denied claims or even policy cancellation if your insurance company finds out.
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